Bitcoin Reclaims Market Spotlight as ATOM Slides 5% Amid Altcoin Retreat
The altcoin rally that captivated markets last week is showing signs of fatigue, with Bitcoin reasserting dominance and pulling capital away from smaller-cap tokens.
Cosmos’ native token, ATOM, dropped 5% over the past 24 hours, declining from $5.26 to $4.98 between July 21 at 11:00 UTC and July 22 at 10:00 UTC. The sell-off follows a strong altcoin-led rally that saw ATOM and other mid-cap tokens outpace Bitcoin, but recent trading suggests a shift in sentiment.
The downturn was triggered by rejection near the $5.32 resistance level during the 15:00 UTC hour, where sell pressure surged. Trading volume peaked at 1.79 million tokens by 16:00 UTC, driving a swift move lower and signaling a decisive breakdown below short-term support.
Overnight, ATOM found temporary footing near $4.97, entering a tight consolidation range between $4.95 and $5.05. A mild rebound lifted prices by 0.4% to $4.99 by 10:06 UTC, but traders remain wary amid waning momentum and broader rotation into Bitcoin.
The price action reflects a market pivot back to large-cap tokens, with Bitcoin regaining attention after a brief altcoin-driven surge.
Technical Analysis Summary
- 24-Hour Range: ATOM declined from $5.26 to $4.98 (−5%)
- Resistance Levels: Strong sell zone at $5.25–$5.32
- Support Levels: Temporary base at $4.93–$4.97
- Volume Surges: 1.79M tokens traded during 16:00 sell-off; 1.55M near $4.97
- Consolidation: Trading within a narrow $4.95–$5.05 band
- Trend Watch: Higher lows may hint at early-stage accumulation
